DayCents

Savings & Banking

College Savings Calculator

College costs have risen faster than general inflation for decades, so the sticker price today is not the number you need. This inflates each year of the course to the year it will actually be paid.

Tuition, fees, room and board at the kind of school you have in mind.

Education costs have historically outpaced general inflation.

Save this much monthly

$1,063

To cover the full projected cost by the start date.

Projected total cost
$210,622
Your savings will grow to
$36,388
Shortfall
$174,234

How this calculator works

Each year of the course is inflated separately: year one by the years until start, year two by one more, and so on, then summed. Current savings compound monthly at your expected return to the start date, and the required monthly contribution is the level payment that closes the remaining gap by then.

Returns and cost inflation are held constant, and the estimate is pre-tax and pre-aid. It assumes the whole cost is funded by the start date rather than paid year by year, which is the more conservative target.

Try an example

Frequently asked questions

Why inflate the cost so heavily?

Because published college costs have risen faster than general prices for most of the past forty years. At 5% a year, a $30,000 course year becomes roughly $49,000 in a decade. Using today's sticker price is the most common way college plans come up short.

Do I need to cover the whole cost?

Rarely, and aiming to can crowd out your own retirement — which has no scholarships. Many families target a third to a half, expecting the rest from current income, aid, work, and reasonable borrowing by the student. Set the annual cost input to the share you intend to fund.

Should I use a 529 plan?

For education-specific saving, usually yes: growth is tax-free when spent on qualified expenses, many states add a deduction or credit, and unused amounts can now be moved to a Roth IRA within limits. The trade-off is flexibility, since non-qualified withdrawals face tax and a penalty on the earnings.

Does saving hurt financial aid?

Less than people fear. Parent-owned assets, including 529s, are assessed at a much lower rate than student-owned assets in federal aid formulas — and having the money generally beats the small aid reduction. Student-owned accounts weigh considerably more heavily.

Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.